Unity Software surges on news John Riccitiello will step down as CEO, Chairman

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By Robert Fofana

Unity Software surges on news John Riccitiello will step down as CEO, Chairman
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Investing.com — Unity Software (NYSE:) said Monday that John Riccitiello will retire as chief executive officer and chairman. James M. Whitehurst had been appointed interim CEO, while lead independent director Roelof Botha had been appointed chairman.

Unity Software shares rose 6.5% in pre-market hours Wednesday following the news.

Unity also reiterated its Q3 guidance.

JMP Securities analysts commented:

“Unity continues to be a leading gaming engine, especially for mobile, as we believe it has pricing power for Create while we expect the company to better bundle its advertising solutions with Create over time.” 

“With shares down 29% since reporting 2Q23 earnings (vs. -3.5% for the NASDAQ), we are increasingly positive but await greater clarity on Unity’s pricing and bundling strategy before recommending shares as we maintain our Market Perform rating.”

Wells Fargo analysts acknowledged that Riccitiello might have sometimes been controversial, but also reminded investors that he led the company “through incredible growth.”

“Think the implementation of runtime fee pricing a fundamentally bullish development, albeit one that was poorly communicated to developers,” the analysts said.

Additional reporting by Senad Karaahmetovic

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